Tuesday, October 21, 2014

Are you buying a home for the first time? Congratulations! Buying
your own home is an excellent way to build your net worth while living
in a space that you can renovate and truly make your own.

If you’re going to be taking out a mortgage to help pay for the
up-front costs of your home, you’ll want to get a head start on the
approval process.
With that in mind, below are four handy tips to ensure that your mortgage application is approved on your first try.

Gather All Of The Necessary Information And Paperwork
You’re going to need as much financial data as possible so try to
prepare your past two income tax returns, pay stubs and other details
ahead of time. It may also be helpful to create a quick budget to show
your lender how your income stacks up against your monthly bills.

Maintain A Clean Credit History
It likely goes without saying that you’ll need as clean a credit
history as possible in order to ensure a quick mortgage approval. If you
think that there may be some negative items on your report, try to have
a copy pulled before you see your mortgage lender as they’ll be asking
you about them.

Don’t Try To Fudge Any Facts On Your Application
Your mortgage lender is legally and professionally obligated to
perform a significant amount of due diligence on you before they are
able to process your approval. If you’ve lied on your application it is
likely to be discovered and will be seen as a serious breach of trust on
your part.
Even if your financial picture isn’t all that strong it’s far better to be honest than to try to hide or falsify your data.

Make A Down Payment Higher Than 20 Percent
Finally, if you can make a down payment on your home that is higher
than 20 percent of the purchase cost you may find it easier to get
approved. Placing more than 20 percent down typically eliminates you
from various mortgage insurance requirements and can show the lender
that you’re capable of paying the mortgage back in full.

The above tips are just a few ways that you can work to ensure that
you have a better chance at being approved for your mortgage. If you
have other questions or for more information, contact your local
mortgage professional and they’ll be happy to share their expertise.

Tuesday, October 14, 2014

Buying a house, condo or townhouse is an exciting and rewarding time
which tends to be a lot of fun. However, along the way you’ll need to
make a number of decisions – including whether you want to buy a
pre-owned home or one that has been built recently and is brand new.
Let’s take a quick look at some of the pros and cons of buying a new home versus buying pre-owned.

New Homes Tend To Have Fewer Problems

One of the major upsides of buying new is that newly-built homes tend
to have very few problems within the first few years of ownership.
While you’ll still be required to make regular maintenance on a new
home, when you buy pre-owned you’re buying a house that has seen years
or decades of weather and regular wear-and-tear.

New Construction Allows For Customization

If you want to be able to customize certain aspects of your home, it
might be better to buy brand new as the builder will be able to
incorporate your requests as they’re building the home. Of course, you
can always renovate and upgrade a pre-owned home but if you have
significant needs you may find it easier to get them built into the home
as it’s being developed.

The Major Downsides To Buying New: Cost And Location

While there are a number of upsides to buying new, there are some downsides that you’ll need to know.
First, new homes almost always cost more than an equivalent pre-owned
home. Brand new homes are filled with new appliances, fixtures and
modern building materials which add to the overall cost of the home.
Unless the pre-owned home is on a larger lot or property, you’ll
generally be able to save a bit when you buy pre-owned.

Depending on where you’re buying, you may also find that the location
where brand new homes are being constructed is much further from the
downtown or urban area. In many cities, the only available space for new
construction is in suburban areas, which means that you may be in for a
lengthy commute to and from work each day if you choose to buy new.
These are just a few of the factors that you’ll need to consider when buying your next dream home.

Friday, October 10, 2014

Whether you’re a freelance web designer who spends their days working
from a coffee shop or a small-business entrepreneur with a team of
staff, if you’re a self-employed individual and you’re thinking about
buying a new house you may face some difficulty getting approved for a
mortgage.
In today’s blog post we’ll share how you can provide paperwork and
other evidence to show your mortgage lender that you’re a quality
applicant who has the ability to make their payments.

Have Your Accountant Prep Your Paperwork
As a general rule of thumb, if you’re in business you should invest
in the services of an accountant to handle your tax preparation and
other financial matters so that you don’t miss anything important.
If you have an accountant, let them know that you’re applying for a
mortgage and ask them to create a package that includes your business
financials as well as your past two or three years of income tax
documents.

Watch Your Debt-to-income Ratio
Your debt-to-income ratio is one of the primary factors calculated
during the mortgage application process and if you don’t have a regular
paycheck or salary this is how your lender will assess your ability to
pay.

In short, this number is the percentage of your monthly gross income
that is used to pay debts, taxes, insurance, and other items. Add up
your car payment, loan payments, credit card payments, child support and
any other regular debts and divide this number from your monthly
income. If this number is too high, your application may be declined.

Ensure You Have A Clean, Stable History
Your credit rating – and that of your business – will be intensely
scrutinized by any potential lender in order to determine whether or not
you present a significant risk of missing a payment or defaulting
entirely.

Maintaining a positive credit history can be challenging as an
entrepreneur, especially if you’re in the early stages of your business
and you’re relying on loans or other financing to help fund your
operations. Try to make sure that every bill is paid and avoid
situations that can leave a blemish on your credit report.

Seek The Advice Of A Mortgage Professional
Even if you have your past taxes and a clean credit history you may
still face a bit of an uphill battle in getting that mortgage approved.
It’s best to seek a mortgage professional’s advice as early on in the
process as you can, as they work with self-employed individuals
regularly and will be able to help you craft your application. Good
luck!

Wednesday, October 8, 2014

If you’re in the process of buying a new home, you’ve likely heard
the term “closing costs” in regards to the many different fees and taxes
that you’ll be required to pay during the purchase process.
In this post we’ll look at a number of these closing costs and what
you will be expected to pay when you buy that next dream home.

Taking out a Mortgage? There Will Be Fees Attached
If you’re taking out a mortgage to finance the cost of buying your
home you’ll end up incurring a variety of fees. Nearly all lenders will
charge a mortgage application fee, which covers the cost of processing
your application and all of the necessary paperwork.
You’ll likely have to pay for a professional appraisal of the home as
well, as the lender will want to ensure that they aren’t lending you
more than the house and property are actually worth.

Inspection And Insurance Costs Will Add Up
If you’re buying a pre-owned home you’ll need to pay for a home
inspection to gain an understanding of the home’s condition and if
you’ll need to make any repairs in the near future. You’ll also need to
purchase homeowner’s insurance on the property to protect yourself in
the event that something does go wrong with the home.

If you put less than 20 percent down on the cost of the home, your
mortgage lender may also require that you purchase private mortgage
insurance; this will vary depending on which state or province you are
buying in.

Don’t Forget About Escrow Fees and Taxes
As with any major financial transaction you’ll need to satisfy the
tax man by paying various taxes on your purchase. These will vary
depending on where you are buying your home, but might include sales
taxes, property taxes, transfer taxes, recording fees, title transfer
fees and more.
If you used a third-party escrow service to manage these fees or to
hold your deposit during the closing process you’ll also need to pay
escrow fees prior to signing the final paperwork.

Tuesday, October 7, 2014

Buying a home is a major financial transaction, especially if you’re
going to need mortgage financing to help cover the purchase cost.

The only way to know if you’re getting the best deal on a mortgage is
to shop around, but with so many different lenders vying for your
business it can be very tough to choose which mortgage is the best fit
for your own situation.
In this post we’ll share how you can compare mortgages from different
lenders or underwriters so that you can get the best possible deal on
your mortgage loan.

Start By Comparing Interest Rates
The most important factor in your mortgage is the interest rate that
you’ll be required to pay so this should be your starting point.
While most lenders will keep their rates competitive with one
another, you may find that there are discounts available based on your
credit or financial history. You might also find that some lenders are
willing to adjust the rate based on how long of a mortgage term you’ll
need, and how much you’re investing in your down payment.

Get An Estimate Of Your Total Closing Costs
While the number that you’re likely focused on is the total monthly
payment that you’ll be making for the next few years, you’ll also want
to find out how much in fees and closing costs you will have to pay in
order to take out the mortgage.
Every lender charges different fees and the amounts can vary wildly,
so be sure to get an estimate on these costs to find out how they’ll
affect your home purchase.

Watch Out For Early Payment Penalties
Finally, you’ll want to keep an eye out for early repayment penalties
as these can cause you a headache later on if you decide you want to
pay your mortgage off a bit faster. The ideal mortgage is one that
allows you to repay the principal amount at any time without facing a
penalty, but depending on the other terms that you require you might
need to shop around a bit before you find a mortgage like this.

You may find that comparison shopping can be a bit overwhelming with
so many different mortgage options, terms and interest rates to choose
from. If you have questions or you need help sorting through it all to
determine which mortgage suits you best, contact your local mortgage
professional today to book a quick consultation.

Friday, October 3, 2014

If you’re looking for a home upgrade that can add resale value to your
home while paying itself off over time, look no further than a solar
panel setup. In the past few years, the cost of installing residential
solar has declined while the efficiency of the panels has increased.
This combination has made home solar one of the best investments that a
homeowner can make – provided they live in an area that receives a good
deal of sunshine.

Solar Adds Immense Value To Your Home
While solar panel installations are not inexpensive, in almost every
case they add at least their total cost to the value of the home as soon
as they are installed. If you decide to sell your home, it will be very
attractive to those who are interested in leaving a lighter footprint
or for anyone who was thinking of going solar after they bought their
new home.

A Quality Install Will Pay For Itself Over Time
As they generate electricity which can be used in your home or sold
back in to the public grid, residential solar panels are one of the only
home upgrades that will pay for themselves over time. If you live in a
very sunny area and watch your home energy consumption, you may even
find that after a few years your solar setup actually begins generating a
profit each month. Home solar setups typically come with a 25-year
warranty so you can rest assured that your panels will be producing
energy for at least the next couple of decades.

Tax Credits And Incentives Reduce The Up-front Financial Cost
Renewable energy sources like solar quality for significant tax
credits and rebates which will vary depending on the city and state or
province that you live in. A quick web search will show you which types
of incentives that you will qualify for, or you can call a local
residential solar installer as they’ll be fully aware of all of the
various incentives that are available.